Consumer
Case Studies
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| Maharashtra
State Consumer Disputes Redressal Commission, Mumbai |
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| Justice
M S Rane, President & V K Date, Member |
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| Sipani
Automobiles Ltd - Appellant |
| Versus |
| Shivaji
Dasharat Babar & Ors – Respondents |
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| Appeal
Nos. 1603 to 1611 of 2003 |
Decided
on 24.03.2004 |
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Consumer
Protection Act, 1986 - Section 15 - Appeal against holding
sale of defective Autorickshaw - Manufacturing defect proved
- Compensation of Rs. 20,000/- granted with interest @12%
p.a. and cost of Rs. 5,000 - Whether report of Regional
Transport Authority as to supply of defective Auto is relevant?
(Yes) - Whether compensation interest and cost awarded are
proper? (No, they are on higher side) (See Paras 10, 11)
- Result - Compensation reduced to Rs. 5,000/-, interest
reduced to 71/2% p.a. and cost to Rs. 1,000 - Appeal partly
allowed (Para 13) - Whether appropriate directions be also
given for return of vehicle on satisfaction of award for
payment of price? (Yes) - Order accordingly. |
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Result:
Appeal
partly allowed accordingly. |
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IMPORTANT
POINT
Where District Forum ordered refund of price of defective
vehicle, it should also direct return of vehicle after award
of compensation, interest and litigation cost is satisfied. |
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ORDER |
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Justice
M S Rane, President - Rest of the Respondents not present
although served.
We are proceeding to dispose of this group of appeals with
a common judgment since the order impugned in various appeals
is common as also the factual matrix as obtained in the
matter herein. Appellants are also common in all these matters.
(For brevity's sake, parties in this judgement in the respective
appeals are referred to as Appellant who are original O
P No. 1 in all the complaints as "Manufacturer" and Respondent
Nos. 1-9 as "Complainants" and Respondent No. 3 as "Dealer
of the Manufacturer". |
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2. |
Manufacturers
have filed these appeals challenging the
common order dated 19.8.2002 passed by the
District Forum, Solapur ordering them to
refund the amount paid by the respective
Complainants towards the price of the vehicle,
namely, autorickshaws known as Arjun 500,
holding that the autorickshaws sold and
supplied to the respective Complainants
contained manufacturing defects. District
Forum has also ordered payment of compensation,
cost, etc.
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3. |
It
is noticed that all the Complainants who
purchased the vehicles in question during
the similar range of time experienced various
defects and faults.
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4. |
Autorickshaws
were purchased by the respective Complainants
for running as a public vehicle for the
purpose of their self-livelihood.
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5. |
However,
it is noticed that soon after the purchase
and taking possession thereof, the vehicles
did not function satisfactorily. There were
numerous complaints, which the Complainants
found in running/plying the autorickshaws.
Matters were reported to the concerned authorities
of the Manufacturer as well as Dealers.
As nothing fruitfully turned out, the complaints
were filed.
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6. |
Manufacturer
appeared and contested the claims of the
Complainants highlighting that the autorickshaws
in question had been subjected to test and
verification by the concerned Government
authority, namely, Vehicle Research & Development
Establishment, Ahmednagar and then only
sold.
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7. |
In
view of this, District Forum referred the
matter to Regional Transport Authority,
District Solapur, who after inspecting and
examining the respective autorickshaws,
submitted a report dated 4.1.2002, which
also supported the grievances of the Complainants
in page No. 18, in particular, para 2. District
Forum has recorded the defects as noticed
and stated by the said Commissioner.
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8. |
No
other evidence for that matter or report
of expert authority was produced by the
manufacturer to dislodge the said report.
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9. |
That
being so, District Forum has considered
that the defects were of major nature, and
made the award.
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10. |
Mr
Kadam, Learned Counsel for the Manufacturer-Appellant
submitted that Regional Transport Authority
couldn't be said to possess the necessary
expertise in the subject. However, it needs
to be stated that no objections were filed
by and on behalf of the Manufacturer/Appellant
in the first instance before the District
Forum. Apart therefrom, the authority to
whom the matter was referred by the District
Forum happened to be Regional Transport
Authority and, as such, an officer directly
concerned with the operation and running
of the vehicles including public vehicles
as also the authority of the State Government.
Therefore, it is reasonable to presume as
also assume that such official possessed
required expertise in the matter.
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11. |
For
all these reasons, District Forum accepted
the said report and has proceeded to make
the award. By and large, we find the same
reasonable save and except rate of interest
as also compensation and cost which appear
to be on higher side. In our view, interest
awarded @ 12% p.a. is on higher side as
also compensation of Rs. 20,000/- and cost
of Rs. 5,000/-.
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12. |
In
our view, interest @ 7-1/2% p.a. and compensation
of Rs. 5,000/- and cost of Rs. 1,000/- will
be fair and reasonable in the facts and
circumstances as obtained in the matter
herein.
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13. |
We
modify the impugned award accordingly. At
this stage, our attention has been drawn
to the order impugned in this appeal. It
is not provided as to what will happen to
the vehicles in question. Mr Chougule for
some of the Complainants fairly stated that
appropriate directions be given to cover
the said lacuna. We are also providing appropriate
directions for return of the vehicle on
satisfaction of the award for payment of
price as has been ordered.
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Appeals
are partially allowed with modification
as under:-
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1. |
Finding
of the District Forum holding that there
are manufacturing defects in the autorickshaws
of the respective Complainants stands confirmed.
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2. |
Amounts
of price as awarded in the respective complaints
vide operative Clause No. 2 in each of the
complaints also stands confirmed.
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3. |
However,
rate of interest of 12% p.a. stands reduced
to 7-1/2%.
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4. |
Further,
amount of compensation of Rs. 20,000/- stands
reduced to Rs. 5,000/- and the cost to Rs.
1,000/-.
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5. |
We
also order Complainants in the respective
complaints that they shall return the vehicles
in question on receipt of the price of the
amount as ordered by the District Forum
to the O P forthwith on receipt thereof.
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6. |
As
far as the appeals are concerned, no order
as to costs.
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7. |
Copies
of the order herein to be furnished to the
parties.
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